A streamlining of operations including job cuts has helped hydrogen technology specialist ITM Power dial back losses.
The Sheffield-based manufacturer reported Ebitda losses of £21m in the six months to the end of October 2023, down from £54.1m in the same period the year before and now expects full year Ebitda losses to be between £45m – £50m. Revenue was significantly boosted from £2m to £8.9m.
In a post on the half year results to investors on the London Stock Exchange, ITM said progress had come on the back of a 12-month turnaround plan which included 30% of jobs cut and a “rationalisation” of its portfolio of products, including the sale of its hydrogen refuelling station joint venture. The firm said it was now set up for standardised and volume manufacturing of its container-based electrolyser units.
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ITM sought to reassure shareholders by saying it had “fundamentally tightened the rigour applied to managing its costs and capital spend” and focused on a “quality over quantity” approach which had improved its credibility with customers. Some of a £5.7m sum invested in capital projects has included expansion of the Sheffield factory which is said to allow production at scale.
CEO Dennis Schulz said: “I am pleased to report that we have completed the implementation of our 12-month plan on time. The first half of the financial year already paints the early picture of a new ITM, which starts to be reflected in our improved financial results. We have accomplished what we set out to do in the last 12 months.
“Our plan successfully addressed the most pressing issues to right the ship. It has made ITM a stronger, more focussed, and more capable company. We have achieved a shift in culture, and the transformation of the company has tangibly improved our project delivery performance. We now have a strong foundation for growth.
“The long-term trajectory for green hydrogen remains an unparalleled opportunity. As I reflect on the more near-term market ahead, we will be operating in a complex environment. This ranges from a massive long-term opportunity just waiting to be captured, to dynamically developing markets emerging at different speeds, and short-term macroeconomics currently slowing down market acceleration.
“With the unchanged need to decarbonise, demand is not reduced but simply piling up, and will cause exponential growth thereafter. The most important attributes for ITM will be readiness and flexibility, and to maintain a strong balance sheet which necessitates continued spending discipline. We will remain at the forefront of technology developments and continue to establish ourselves as the most credible OEM for commercial and especially large-scale projects.”
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
